Ethnic outbidding and nested competition: Explaining the extremism of ethnonational minority parties in Europe

The classical outbidding model of ethnic politics argues that democratic competition involving ethnic parties inevitably leads to ethnic outbidding where parties adopt ever more extreme positions. However, recent small‐N studies show that ethnic outbidding is only one of a range of strategies available to ethnic parties. This article seeks to explain why some ethnic parties are extremist, whereas others adopt moderate positions. Drawing on the ethnic outbidding and the nested competition model of ethnic party competition, it is hypothesised that the ethnic segmentation of the electoral market, and the relative salience of an ethnically cross‐cutting economic dimension of party competition, account for the varying degrees of extremism. Hypotheses are tested drawing on a novel, expert‐survey‐based dataset that provides indicators for the positions of 83 ethnonational minority parties in 22 European democracies in 2011. Results of ordinary least squares and two‐level linear regressions show that as the economic dimension gains importance, parties become more moderate relative to the party system mean. The electorate's ethnic segmentation has a positive effect on extremism, but this effect is not significant in all models. Contrary to expectations, higher ethnic segmentation of the party system is associated with more moderate positions in the majority of the estimated models.